The people who we are supposed to be worrying about are the sort of retirees etc, with moderate savings, who somehow get caught up in messes like Storm.
AND the professional F/A fraternity don't want them!
I wouldn't want them either.
They want the world and the want it NOW!
and want it for next to nothing.
One solution
Perhaps an insurance cover by the vendor to cover
catastrophic loss from the consumer.
Much like Home Owners Warranty Insurance in the Building Industry
Or Mortgage Insurance for Low Doc Loans?
Ok so here we get to the main reason why we educate our clients....is to give them reasonable expectations around levels of return and trade off between potential return and risk management, among other things. Sometimes though it's a little hard to remember your lessons when the emotion grips you tightly.
Many people also don't know where to turn for good information, because drama sells newspapers and the media can be trusted to blow any issue all out of proportion.
Cheers
Sir O
Obviously, for most people this kind of service is not going to make financial sense, but its out there, all under the same "FA" banner. Worlds apart.
I think this sums up a great deal of the thread. There are people in different leagues all running around with the same title.
If you have 25 clients with $150k as a bank planner, you have a book. If you have 25 clients with $150k as a planner in private practice, you're probably going backwards if you weren't being kept afloat by new business.
Another note on how far removed from the average punter that we, people who voluntarily spend time on (and at least a good bit of the time enjoy...) a board about finance and investments, really are, I have a fun fact.
I spoke to 3 people today whose expectations of the kind of returns investing through an adviser would get them were 10-15% p.a. year on year, and that they would not tolerate any risk of capital loss. This is what you are up against when trying to give advice to the unwashed masses. Why do you think Australian's love property investment so much? Because real estate agents and property spruikers can promise whatever they like, and all the banks will let them borrow as much as they possibly can...
Another note on how far removed from the average punter that we, people who voluntarily spend time on (and at least a good bit of the time enjoy...) a board about finance and investments, really are, I have a fun fact.
I spoke to 3 people today whose expectations of the kind of returns investing through an adviser would get them were 10-15% p.a. year on year, and that they would not tolerate any risk of capital loss. This is what you are up against when trying to give advice to the unwashed masses. Why do you think Australian's love property investment so much? Because real estate agents and property spruikers can promise whatever they like, and all the banks will let them borrow as much as they possibly can...
I still reckon Financial Planners pitching to either Mr. and Mrs. Shopping Trolley or to so called "Sophisticated Investors" are muppets.
One and all, bar none.
gg
I've found dealing with Mr and Mrs Shopping Trolley (I assume you mean the average Australian?) to be a much more enjoyable experience so far than helping rich people buy boats, holiday homes and sports cars. Might not be as much money in it, but I'll never have to kiss a client's ass over a game of golf or a long lunch.
.....
“It has absolutely broken my heart to see what financial advisers have done and what they continue to do to people.”
Mr Medcraft said the financial planning sector ”” which has been closely involved in the vast majority of major company collapses over the past decade ”” had repeatedly ignored pressure from ASIC to lift its standard.
“With the financial planning industry, we keep nudging them but we don’t get confidence, there have been nudges, there have been nudges,” he said.
“Australian’s want advice they can trust, it’s absolutely appalling!” ....
Financial Planners breaking ASIC Chairman's heart.
http://www.theaustralian.com.au/business/financial-services/asic-absolutely-appalled-by-state-of-financial-planning-industry/story-fn91wd6x-1227143438109
I spoke to 3 people today whose expectations of the kind of returns investing through an adviser would get them were 10-15% p.a. year on year, and that they would not tolerate any risk of capital loss. This is what you are up against when trying to give advice to the unwashed masses.
Do people really expect that sort of outcome? They obviously have no concept of reality.
Some of my friends are nearing retirement, go to see a financial planner, are told all is good as long as you don't want a house.
Oh Emm Gee!
Has he ever read his job description?
I'm pretty sure there is a passage hidden in there that it's ASIC's mission to "keep the barstuds honest" and toss the bad apples out.
(If it isn't, it ought to be!)
I'd also suggest that a broken heart is no real help when it comes to doing his job. How about setting proper standards, educating any would-be adviser properly, and ensuring that the rules are followed in the clients' best interest - not to rake in best bonuses. But maybe that's expecting too much.
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